Author: Staff Writer

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Beyond

Gold drops to ₹1,54,055, silver falls to ₹2,29,600

Gold and silver prices moved lower in early trade on Wednesday, August 19, as rising crude oil prices and renewed uncertainty over US-Iran relations strengthened expectations that the US Federal Reserve may have to keep interest rates higher for longer.

On the Multi Commodity Exchange (MCX), gold October futures fell 0.13% to ₹1,54,055 per 10 grams, while silver September futures declined 1.21% to ₹2,29,600 per kg . The fall came as investors turned cautious ahead of the release of the Federal Reserve’s July meeting minutes, which could provide fresh clues about the direction of US monetary policy.

The latest move in the domestic gold price today comes after a sharp decline in international bullion prices during the previous session. COMEX gold futures were down 0.28% at $4,450.80 an ounce in morning trade, while silver fell 1.38% to $63.15 an ounce. The LBMA spot gold price stood at $4,403.50 an ounce at the August 18 PM fixing.

The pressure on precious metals is closely linked to developments in the oil market. Brent crude was trading near $92 a barrel, marking its fourth consecutive session of gains. The latest rise followed comments from US President Donald Trump that there were no ongoing negotiations with Iran, while uncertainty continued over the status of the strategically important Strait of Hormuz.

Higher crude prices have become an important concern for financial markets and the broader economy because they can add to inflationary pressure. For gold investors, this creates a complicated situation. Gold is traditionally viewed as a hedge against inflation and geopolitical uncertainty, but persistent inflation can also encourage central banks, particularly the US Federal Reserve, to maintain or raise interest rates.

That prospect can weigh on gold because the metal does not generate interest income. When interest rates rise, investors can find interest-bearing assets more attractive, increasing the opportunity cost of holding gold.

The Federal Reserve’s July meeting minutes, due later on Wednesday, have therefore become the immediate focus for bullion traders. The Fed left its policy rate unchanged at its previous meeting, but three of the 12 voting members of the Federal Open Market Committee supported a 25-basis-point increase. That split highlighted the growing concern among some policymakers about inflation.

Current market pricing suggests that investors are still leaning towards a rate hold, although the possibility of a September hike has not disappeared. The CME FedWatch Tool was indicating roughly a 65% probability of rates remaining unchanged and a 35% probability of a September rate hike. Another market update placed the probabilities at 64% and 36%, respectively, showing that expectations remain finely balanced.

The direction of the US dollar is providing some support to gold. The dollar index eased to 99.57 from 99.66 in the previous session. A weaker dollar generally makes gold cheaper for buyers holding other currencies and can limit the downside in international bullion prices.

That dynamic was visible in global trading, where gold recovered modestly after suffering a nearly 2% fall on Tuesday. Spot gold rose around 0.5% to $4,356.55 an ounce in early Wednesday trading, while US gold futures remained slightly lower. The recovery came as US Treasury yields eased from recent highs following a global bond-market sell-off.

The domestic gold rate has also been influenced by the movement in the rupee and international prices. The previous MCX session ended with domestic spot gold at around ₹1,53,626 per 10 grams. Wednesday’s October futures price of ₹1,54,055 therefore represents a modest recovery from that level, even though the contract was trading marginally lower during the morning session.

Silver has faced stronger selling pressure than gold. The silver price today declined 1.21% on MCX to ₹2,29,600 per kg, while international silver was down more than 1% in the morning trade. Silver tends to be more volatile than gold because it is influenced not only by investment demand but also by industrial demand.

The geopolitical backdrop, however, continues to provide a floor for bullion. Uncertainty surrounding the Strait of Hormuz and the broader US-Iran conflict could encourage investors to maintain exposure to traditional safe-haven assets. Both Washington and Tehran have made conflicting claims about the status of the waterway, keeping the situation fluid.

Another view is that gold could retain a positive longer-term bias as long as prices remain above ₹1,51,000. A sustained move above the prevailing trendline could potentially take MCX gold towards ₹1,58,000. However, traders are expected to remain cautious until the Fed minutes provide greater clarity on interest rates.

Beyond the minutes, markets will also watch upcoming US inflation data. The Federal Reserve’s preferred inflation measure, the Personal Consumption Expenditures (PCE) price index, is due on August 26 and could influence expectations ahead of the Fed’s September 15-16 policy meeting.

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Corporate

Sensex falls over 300 pts, Nifty below 24,100

Indian equity markets came under renewed selling pressure when it opened on Wednesday, August 19, as rising crude oil prices, fresh geopolitical uncertainty and elevated global bond yields made investors more cautious. The Sensex fell more than 300 points, while the Nifty 50 slipped below the 24,100 mark as the market extended its recent losing streak.

The weakness followed another difficult session on Tuesday. The Nifty closed 132.75 points, or 0.55%, lower at 24,154.90, marking its sixth consecutive session of losses. The Sensex fell 492.70 points, or 0.63%, to end at 77,235.46. The continued decline has pushed investors to reassess near-term risks for the Indian stock market as global factors increasingly dictate trading sentiment.

The biggest concern for investors remains crude oil prices. Brent crude moved above $91 a barrel and was approaching $92, adding to worries for oil-importing economies such as India. Oil prices have risen sharply in recent weeks as uncertainty surrounding the Middle East has increased, with the US-Iran situation emerging as a major market trigger.

Concerns have also intensified around the Strait of Hormuz, one of the world’s most important energy transit routes. US President Donald Trump has denied that Washington is currently holding talks with Iran, while Tehran has made conflicting claims regarding the situation. The uncertainty has raised fears that geopolitical tensions could remain elevated and disrupt energy markets.

For India, expensive crude has wider economic implications. The country imports a significant share of its oil requirements, meaning a sustained increase in international crude prices can raise the import bill and put pressure on the rupee. Higher fuel and transportation costs can also feed into inflation and increase expenses for companies across sectors.

The impact is already visible in the currency market. The Indian rupee opened around Rs 95.71 against the US dollar, compared with Rs 95.68 in the previous session. A weaker rupee combined with higher crude prices can make India’s imports more expensive and add another challenge for policymakers and businesses.

Global bond yields are another factor weighing on equities. Long-term borrowing costs have climbed across major economies amid concerns over government debt, inflation and geopolitical risks. Higher yields can make bonds more attractive relative to emerging-market equities, potentially reducing the flow of global capital into markets such as India.

Foreign investor activity has therefore remained a key focus. Foreign investors have sold about $25 billion of Indian equities so far in 2026, according to market data cited in the latest trading setup. However, they turned buyers on Tuesday, purchasing Indian shares worth around Rs 1,651.5 crore. Domestic institutional investors provided stronger support, buying stocks worth roughly Rs 2,579.3 crore.

Despite the broader market decline, some stocks continued to attract buying interest. Prism Johnson was among the strongest gainers, climbing sharply after the company secured long-term coal supply contracts from Eastern Coalfields and South Eastern Coalfields. The development provided a stock-specific trigger at a time when the broader market remained weak.

Mahanagar Gas (MGL) and Indraprastha Gas (IGL) were also among the notable gainers. The city gas distribution companies benefited from government measures designed to encourage an increase in domestic connections for piped cooking gas.

On the other side, Tata Steel and Bajaj Finance featured among the major losers in morning trade. Weakness in financial and metal stocks added to the pressure on the benchmark indices. With financial companies accounting for a large portion of the Nifty’s weight, declines in banking and financial stocks can have a significant impact on overall index performance.

The sectoral picture was mixed. IT stocks showed some resilience after a sharp decline in the previous sessions, while auto and pharma counters also found selective buying. However, most major sectoral indices remained in negative territory.

The weakness extended to broader markets as well. The Nifty Midcap 100 and Nifty Smallcap 100 were trading lower, indicating that investor caution was not confined to large-cap stocks. The negative breadth reflected a wider risk-off mood, with traders preferring to reduce exposure rather than aggressively buy into declines.

Global markets also offered little encouragement. Asian equities opened lower on Wednesday, with South Korean markets among the hardest hit. Other major Asian markets also remained under pressure, reflecting concerns about higher oil prices, elevated borrowing costs and geopolitical risks. US equities had ended lower in the previous session, adding to the cautious tone in Indian markets.

The latest fall has also brought key Nifty technical levels into focus. The 24,000-24,100 zone is increasingly important after the index slipped below 24,100. A sustained break below nearby support could invite additional selling, while a recovery above 24,200-24,260 would be needed to improve the short-term market outlook.

Investors will now track crude oil prices, developments involving the US and Iran, movements in global bond yields and foreign institutional investor flows. The latest US Federal Reserve meeting minutes will also be watched closely for signals on the future direction of interest rates.

The immediate challenge is the combination of expensive oil and fragile global sentiment. While domestic institutional buying and selective stock-specific gains are providing some support, the Sensex and Nifty remain vulnerable as long as crude prices stay elevated and geopolitical uncertainty continues.

With the Nifty now below 24,100 and its losing streak extending into a seventh session, investors are likely to remain selective. Any easing in crude prices or improvement in global risk sentiment could provide relief, but until then, volatility is expected to remain a defining feature of trading on Dalal Street.

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Corporate

BGMI Lite India launch confirmed for late 2026

Krafton India has officially confirmed that BGMI Lite will launch in India by the end of 2026, giving millions of mobile gamers another way to experience the popular Battlegrounds Mobile India (BGMI) franchise. The announcement has generated considerable interest among players who have been waiting for a lighter version of the battle royale game, particularly those using budget and older smartphones.

However, there is still plenty that Krafton has not revealed. The company has not announced an exact BGMI Lite India launch date, pre-registration details, download size, minimum system requirements or the full list of gameplay features. Krafton said more information about the game and its gameplay experience will be shared closer to the launch.

The announcement came as BGMI continues to expand its presence in India. Krafton has positioned BGMI Lite as the next step in widening access to its battle royale ecosystem. The basic idea is to offer a version of the game that can reach a broader group of players without requiring everyone to own a powerful smartphone.

That could be particularly significant in India, where a large number of mobile users continue to rely on entry-level and mid-range devices. Modern multiplayer games can demand considerable storage, processing power and memory, which can make them difficult to run smoothly on older hardware. A properly optimised BGMI Lite could address that gap.

Krafton, however, has not yet confirmed exactly how the new game will achieve this. While the word “Lite” naturally suggests lower hardware requirements, players should not assume that BGMI Lite will simply be a smaller version of the existing game. The developer has yet to disclose its engine, graphics settings, supported devices, map design, match sizes or other technical specifications.

The expectation has largely been shaped by the earlier PUBG Mobile Lite experience. That game was designed to work on less powerful Android smartphones and offered shorter, more compact battle royale matches. It had a much smaller installation footprint than the full PUBG Mobile experience and was built around the needs of players with limited hardware.

But those details should not be automatically applied to the upcoming Indian game. Krafton has not said that BGMI Lite will follow the same specifications or gameplay structure as PUBG Mobile Lite. Reports suggesting specific RAM requirements, download sizes, player counts or match durations for the new title remain unconfirmed unless they come directly from Krafton.

That distinction is important for players. There has already been considerable speculation online about the BGMI Lite release date, features and system requirements. Some reports and social media posts have circulated specific dates and technical details, but Krafton’s official announcement only confirms a launch by the end of 2026.

There is also no confirmed official pre-registration date at present. Players should therefore be cautious about websites or social media accounts claiming to offer early access, APK files or registration links for BGMI Lite download. Until Krafton announces an official channel, such claims should not be treated as legitimate.

The new title arrives at an important time for BGMI. The main game has built a substantial gaming community in India and has become an important part of the country’s mobile gaming and esports ecosystem. Krafton’s decision to introduce a lighter version suggests that the company sees further room for growth, particularly among users who may not be able to run the full game comfortably.

The move could also help strengthen BGMI’s reach beyond the high-performance smartphone segment. Competitive mobile gaming has increasingly become accessible to users across different price categories, and hardware optimisation can play an important role in bringing new players into the ecosystem.

The biggest question or existing BGMI players, will be how closely BGMI Lite resembles the main game. Players will want to know whether they can expect the same core battle royale experience, familiar controls and weapons, similar maps and comparable multiplayer mechanics. At the same time, Krafton may introduce changes to graphics, game size and performance to ensure smoother gameplay on less powerful devices.

The company has not yet confirmed whether BGMI Lite will support cross-play or interaction with the existing BGMI player base. Details such as account connectivity, progression, purchases, esports compatibility and game modes are also still unknown. These decisions could determine whether the Lite version becomes simply an alternative way to play BGMI or develops into a distinct experience within the franchise.

Krafton’s announcement also comes alongside continued efforts to build the wider BGMI ecosystem in India. The company has invested heavily in local gaming and esports, while BGMI has developed a strong community of players, creators and competitive teams. A lighter version could potentially bring more users into that ecosystem and expand the audience for future tournaments and gaming content.

The announcement is therefore less about revealing a finished product and more about confirming Krafton’s direction. The company appears to be preparing a more accessible version of one of India’s most recognisable mobile battle royale games. If BGMI Lite delivers smoother performance on affordable smartphones while retaining the core elements players enjoy, it could open the door to a much wider audience.

Until then, the safest approach for players is to rely only on official Krafton announcements for the BGMI Lite India launch date, download information and system requirements. With the game scheduled for release before the end of 2026, more concrete details are expected to emerge in the months ahead.

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Corporate

Sensex tumbles 490 points, Nifty slips below 24,200

Indian equities ended sharply lower on Tuesday, extending their recent losing streak as investors turned cautious amid rising crude oil prices, renewed tensions in the Middle East and persistent selling in technology stocks. The Sensex fell 492.70 points, or 0.63%, to close at 77,235.46, while the Nifty 50 declined 132.75 points, or 0.55%, to settle at 24,154.90.

The weak session marked the sixth consecutive fall for the Nifty and the third straight decline for the Sensex. The selling pressure was visible from the opening bell, with the Sensex falling more than 250 points and the Nifty slipping below the 24,250 level in early trade. The indices remained under pressure through most of the session, with investors reluctant to take fresh positions as global risks continued to build.

The biggest concern for the market was the renewed rise in crude oil prices. Brent crude moved above $91 a barrel as uncertainty surrounding the Iran-US conflict increased. The prospect of oil remaining expensive for longer has raised concerns for India because the country remains heavily dependent on imports to meet its energy needs. Higher crude prices can put pressure on inflation, the current account balance and corporate margins, making investors more cautious about Indian equities.

The geopolitical situation also weighed on sentiment. Hopes of a quick peace agreement in the Middle East have weakened, leaving markets vulnerable to further swings in energy prices and global risk appetite. European and Asian markets also traded lower, while US equity futures pointed to a weak opening. The Stoxx Europe 600 was down 0.5%, S&P 500 futures fell 0.5% and Nasdaq 100 futures declined 1.3%, according to market data during the Indian session.

Another pressure point was the rise in US Treasury yields. The US 10-year bond yield climbed to 4.73%, making dollar-denominated assets more attractive and potentially reducing the appeal of emerging-market equities. This comes at a time when foreign investors have already been cautious about Indian stocks. The combination of higher US yields, expensive crude and geopolitical uncertainty has created a difficult backdrop for foreign institutional flows.

Information technology stocks were among the major losers on the benchmarks. Infosys and HCL Technologies fell around 2% during the session, adding to the pressure on the Nifty. The IT sector has remained sensitive to global growth expectations, currency movements and developments in the US economy. With global markets showing signs of caution, investors continued to reduce exposure to technology counters.

Among the gainers, defence stocks stood out as strong performers. Shares of companies including Paras Defence and Garden Reach Shipbuilders & Engineers surged after the government notified its sixth indigenisation list covering 405 items that will be sourced only from Indian suppliers. The announcement strengthened expectations of continued domestic demand for defence manufacturers and triggered sharp buying in several related stocks.

Select pharma, healthcare, auto and consumer durables stocks also managed to stay in the green, offering some cushion to the broader market. Sun Pharma, Maruti Suzuki and Tata Motors were among the notable gainers, while oil and gas and certain chemical stocks saw intermittent buying interest as well, even as overall sentiment remained weak.

On the losing side, IT stocks led the decline, followed by pressure in select metal counters such as Tata Steel and broader technology-linked names. Weak global cues and concerns over growth outlook kept investors away from riskier segments of the market.

The broader market also struggled, although the decline was less severe than in the benchmark indices. Nifty Midcap 100 and Nifty Smallcap 100 ended lower by up to around 0.4%, reflecting a cautious mood beyond the large-cap segment.

The rupee also remained under pressure. The Indian currency closed at ₹95.68 against the US dollar, compared with ₹95.6025 in the previous session. It had opened at ₹95.6625, with market participants watching for possible intervention by the Reserve Bank of India as the currency stayed close to record-weak levels.

The bond market reflected similar concerns. Indian government bond yields moved higher in early trade as crude oil prices crossed $90 a barrel. The benchmark 6.94% 2036 bond yield rose three basis points to 6.8407%. Rising oil prices can complicate the inflation outlook and influence expectations around interest rates, adding another layer of uncertainty for investors.

There were also several stock-specific developments during the day. Paytm saw a large block transaction involving about 3% of its equity, with 1.92 crore shares changing hands at ₹1,535 apiece, amounting to roughly ₹2,950 crore. Separately, Milky Mist gained sharply after its market debut, touching the upper circuit and trading well above its IPO price.

Despite the weak headline numbers, analysts pointed out that domestic liquidity could provide some support if the market sees deeper declines. Domestic institutional investors have continued to offer a cushion as foreign investors remain cautious. The underlying Indian economy and expectations of an improvement in corporate earnings also provide some support, although near-term trading is likely to remain volatile.

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Beyond

ONGC gets US nod for Venezuela operations

State-run Oil and Natural Gas Corporation (ONGC) has received a licence from the US Treasury Department’s Office of Foreign Assets Control (OFAC) that allows its overseas arm, ONGC Videsh Ltd (OVL), to resume full operations in Venezuela.

The approval removes a major sanctions-related hurdle that had restricted ONGC’s activities in the South American country for years. The company can now look at increasing oil production, making fresh investments, negotiating new agreements and potentially taking over the operatorship of some projects currently managed by Venezuela’s state-run oil company PDVSA.

The development is important for ONGC’s overseas strategy as the company looks to increase production from its international assets and diversify its sources of crude oil. The OFAC licence also creates a path for the company to recover hundreds of millions of dollars in dividends that have remained stuck because of restrictions on financial transactions involving Venezuela.

ONGC Finance Director Anupam Agarwal said the US approval gives the company greater freedom to operate its Venezuelan projects. Earlier, ONGC had deliberately limited activities because of the risks associated with US sanctions. With the licence now in place, the company can examine ways to increase production and improve returns from its investments.

ONGC Videsh has interests in two major Venezuelan oil projects. It holds a 40% stake in the San Cristobal project and an 11% interest in the Carabobo project. The assets are located in the oil-rich Orinoco region and form an important part of ONGC’s overseas portfolio.

Production from these projects is currently estimated at around 12,000 to 15,000 barrels per day. ONGC is targeting an increase to about 30,000 barrels per day within a year, although achieving that goal will depend on operational decisions, investment and discussions with Venezuelan authorities and partners.

One of the biggest opportunities is the possibility of gaining operatorship. At present, Venezuela’s state oil company PDVSA plays a key role in operating the projects. ONGC wants to explore whether greater operational control can help improve production and efficiency.

Taking operatorship would give ONGC greater control over field development, production planning and investment decisions. However, the move would require negotiations with Venezuelan authorities and other stakeholders, meaning the licence does not automatically transfer operational control to the Indian company.

The other major issue is money owed to ONGC. Its Venezuelan investments have generated dividends that could not be repatriated because of sanctions and restrictions on financial transactions. The outstanding amount is estimated at around $600 million, while other reports put the figure at more than $500 million.

Data cited by Sahi showed that the outstanding dividend receivable of an ONGC Videsh subsidiary from Venezuelan associate PIVSA stood at ₹4,818.47 crore as of December 31, 2025, up from ₹4,758.44 crore three months earlier. The new US licence could allow ONGC to begin discussions aimed at recovering these funds.

For ONGC, recovering the money would provide a significant financial boost. However, the process may not be immediate. The company will need to work with its Venezuelan partners and navigate local procedures before the pending dividends can be converted into cash and transferred out of the country.

The US decision also reflects a broader change in the operating environment for Venezuela’s oil industry. US sanctions have historically restricted international companies from freely conducting business with Venezuelan entities. Recent policy changes have gradually opened the door for selected international energy companies to return or expand their presence in the country.

That shift is creating opportunities for international oil companies while also increasing competition for Venezuela’s energy assets. ONGC will therefore need to balance the potential returns from its Venezuelan investments against geopolitical and operational risks.

The company’s latest move comes as it works to strengthen production across its domestic and international portfolio. ONGC has been investing heavily in exploration and production while also seeking partnerships to improve output from mature fields.

Its overseas arm, OVL, remains an important part of this strategy. The company has interests in projects across several countries, including Russia, Mozambique and Venezuela. ONGC has previously indicated that international assets can provide additional production and help diversify its energy portfolio.

The Venezuela opportunity is particularly significant because of the country’s vast crude reserves. Increased production from ONGC’s existing assets could strengthen its international oil output at a time when India remains heavily dependent on imports to meet domestic energy requirements. The development also comes as global energy markets and economic developments remain closely influenced by sanctions, geopolitics and changes in crude oil supply.

For India, the development could also support the broader objective of energy security. Having stakes in overseas oilfields gives Indian companies access to additional sources of crude and reduces dependence on any single geographical region.

At the same time, Venezuela remains a challenging market. Political developments, regulatory changes, infrastructure constraints and the condition of oilfields could affect ONGC’s plans. The company will also need to invest in production and infrastructure if it wants to achieve its target of doubling output.

Investors are likely to closely track three developments: the recovery of the pending dividends, progress towards operatorship and the pace at which oil production increases. A successful execution of these plans could improve the financial contribution from ONGC Videsh’s Venezuelan assets.

The OFAC licence therefore marks more than a regulatory clearance for ONGC. It gives the Indian oil major an opportunity to revive assets that had remained constrained by sanctions, recover money that had been locked up and seek greater control over production.

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Technology

Meta faces major US trial over youth safety claims

Meta Platforms is facing a major legal challenge in the US as a federal trial examines allegations that Facebook and Instagram were designed to encourage prolonged and potentially addictive use among children and teenagers.

The case, being heard in Oakland, California, is part of a wider legal push against major social media platforms over alleged harm to young users. Attorneys general from 29 US states are involved in the litigation, with California, Colorado, Kentucky and New Jersey leading the current proceedings.

The states accuse Meta of knowingly developing platform features that encouraged young users to remain online for longer periods while failing to adequately address concerns about their safety. Meta has denied the allegations and maintains that it has invested heavily in tools designed to protect teenagers online.

The lawsuit puts the spotlight on some of the technology behind Facebook and Instagram, particularly recommendation algorithms, notifications, infinite scrolling and engagement-driven design. Prosecutors are expected to argue that these features were developed to maximise user engagement and could make it difficult for younger users to stop using the platforms.

The case also examines whether Meta adequately protected children from potential risks associated with its services. Authorities have raised concerns about the company’s handling of young users’ data and whether it complied with US requirements governing the collection of information from children.

A major focus of the trial is expected to be Meta’s internal research and communications. Regulators and state attorneys have previously cited company documents to argue that Meta was aware of concerns surrounding teenagers’ experiences on Instagram and Facebook.

The allegations extend beyond ordinary concerns about excessive screen time. The states argue that the design of social media services can contribute to problems such as anxiety, depression, body-image concerns and other mental health issues among some young users.

Meta has rejected the suggestion that its platforms are responsible for such problems. The company has pointed to parental controls, age-related protections, teen accounts and other online safety features introduced in recent years. It has also argued that the states need to establish a direct link between specific Meta products and the harms they allege.

The technology company is facing the trial after years of increasing scrutiny over its approach to teenagers. Instagram, in particular, has faced questions over the effect of image-focused content and recommendation systems on younger users.

Meta has responded by introducing additional safeguards for teen accounts. These include stronger privacy settings, restrictions on certain types of content and greater controls for parents. The company has also said it continues to invest in artificial intelligence and other technologies to identify harmful content and improve user safety.

However, critics argue that safety measures introduced after regulatory pressure do not resolve questions about how the platforms were originally designed. The current trial will examine whether Meta’s business model and product decisions placed user engagement ahead of the safety of younger users.

The proceedings are being overseen by US District Judge Yvonne Gonzalez Rogers. An advisory jury is participating in the trial, but its findings will not constitute the final decision. The judge will ultimately determine the outcome.

The trial could run for several weeks and may involve testimony from senior Meta executives. Company leadership could face detailed questions about product development, internal research, content recommendation systems and decisions involving teenage users.

The case is significant for the technology industry because it could influence how courts assess the responsibility of platforms whose algorithms shape what users see and how long they remain engaged, adding to the wider debate around technology regulation and platform accountability.

Meta is not the only technology company facing such scrutiny. TikTok, YouTube and Snap are also dealing with lawsuits and regulatory investigations involving alleged risks to children and teenagers. School districts, families and government authorities across the US have increasingly questioned whether social media companies have done enough to protect young users.

The legal pressure is also encouraging policymakers to examine potential changes to technology regulation. Age verification, parental controls, limits on targeted advertising, notification restrictions and greater transparency around recommendation algorithms are among the issues being discussed.

The California trial represents another test of its approach to product design and child safety. The company must defend its existing practices while demonstrating that its platforms can operate responsibly as governments demand stronger protections for minors.

The case could also have implications for the wider AI and social media technology ecosystem. Recommendation engines and personalised feeds have become central to the way platforms retain users. A ruling against Meta could encourage regulators to examine whether similar engagement mechanisms used across other digital services require stronger safeguards.

At the centre of the dispute is a fundamental question about technology design: when a platform uses algorithms and behavioural signals to keep users engaged, where should the line be drawn when those users are children?

The outcome could influence future product development, content recommendation systems and youth safety policies across the technology sector. It could also increase pressure on social media companies to provide greater transparency about how their algorithms work.

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Corporate

Molbio Diagnostics shares make strong debut at 21% premium

Molbio Diagnostics made a strong debut on the stock exchanges on August 17, with its shares opening at ₹980 on both the NSE and BSE. The listing price represented a 21.44% premium over the company’s IPO issue price of ₹807, giving investors a substantial listing-day gain despite weak sentiment across the broader equity market.

The strong debut came after the Molbio Diagnostics IPO received overwhelming demand during its three-day subscription period. The ₹939.70-crore public issue was subscribed 70.27 times, with investors placing bids for more than 57.32 crore shares against around 81.59 lakh shares on offer. The heavy subscription indicated strong appetite for the diagnostics company even as the broader market remained under pressure.

Molbio had fixed the IPO price band at ₹768-₹807 per share and priced the issue at the upper end after receiving strong investor interest. The issue consisted of a fresh share sale of about ₹200 crore and an offer for sale (OFS) of shares worth around ₹739.70 crore.

The company’s stock market debut also surpassed expectations suggested by the grey market premium (GMP) before listing. Reports had indicated a GMP of around ₹120 before the debut, implying a potential listing price of approximately ₹927. The actual opening price of ₹980 was therefore stronger than the grey-market indication.

However, the initial excitement was followed by some profit booking. After opening at ₹980, Molbio shares fell to ₹925.80 on the BSE and ₹926.35 on the NSE. The movement showed that some investors who received IPO allotments chose to lock in gains soon after the listing rather than hold the stock for the longer term.

The stock subsequently recovered during the session. Molbio shares rose as much as 6% from the listing level to touch ₹1,044 on Monday, reflecting continued buying interest after the strong opening. The performance highlighted the gap between the initial profit-taking and the underlying investor demand for the stock.

At the ₹980 listing price, Molbio Diagnostics commanded a market capitalisation of roughly ₹11,293 crore. The sharp premium also gave early investors a sizeable gain over the IPO price, although the subsequent movement demonstrated that listing gains can remain volatile, particularly in a newly listed stock.

Molbio Diagnostics is a Goa-based molecular diagnostics company best known for its Truenat platform. The company develops point-of-care testing technologies designed to provide molecular diagnostic results closer to patients rather than relying entirely on central laboratories. Its products have been used across a range of infectious disease testing applications.

The company’s business has benefited from growing demand for rapid and decentralised diagnostics. Its Truenat platform is designed to operate in settings where conventional laboratory infrastructure may be limited, giving Molbio exposure to healthcare markets in India as well as overseas markets.

Financial performance has also been one of the factors supporting investor interest. Molbio reported revenue of about ₹1,455 crore in 2025-26, compared with ₹1,028 crore in the previous year. Its profit increased to around ₹164 crore from approximately ₹139 crore during the same period, according to IPO-related financial data.

The company’s growth prospects are closely linked to increasing healthcare spending, demand for faster diagnosis and wider adoption of point-of-care diagnostics. Expanding its product portfolio and increasing the use of its testing platform could provide additional opportunities as healthcare systems seek quicker and more accessible diagnostic solutions.

At the same time, investors will have to watch whether Molbio can sustain its growth and margins after becoming a listed company. A strong IPO debut often creates elevated expectations, and the stock’s future performance will ultimately depend on earnings growth rather than the initial listing premium.

Analysts and market observers have also highlighted the importance of upcoming anchor investor lock-in periods. The release of shares held by anchor investors can potentially increase supply in the market and create short-term selling pressure. Investors will therefore be watching trading volumes and institutional activity in the weeks following the listing.

The valuation is another factor investors need to consider. A strong listing pushes the market price significantly above the IPO issue price, which means future earnings will have to justify the higher valuation. Investors assessing whether to hold the stock will need to track revenue growth, profitability, cash flows, debt reduction and the company’s ability to expand its diagnostics business.

The IPO’s performance also stands out against the backdrop of a cautious Indian stock market. Molbio’s debut showed that investor interest can remain strong for companies with a clear growth story even when sentiment across the broader market is subdued.

The company now faces the more difficult task of delivering consistent performance as a listed entity. The transition from an unlisted business to a publicly traded company brings greater scrutiny from shareholders and analysts, along with pressure to maintain earnings momentum and execute expansion plans.

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Leaders

Vishal Garg ousted years after Zoom layoffs

Vishal Garg, the Indian-American founder of mortgage technology company Better Home & Finance, has been removed as chief executive nearly five years after he became widely known for dismissing about 900 employees during a short Zoom call.

Garg was ousted by Better’s board on August 3 and replaced by investor Daniel Lewis. The leadership change has now turned into a wider battle over control of the company, with Garg challenging the board’s decision and seeking to return as CEO.

The episode has created an unusual reversal for Garg. In December 2021, he became the face of one of the most widely criticised mass layoffs of the pandemic era after informing around 900 employees that they were losing their jobs during a video call shortly before Christmas. The manner in which the layoffs were announced triggered widespread criticism of his leadership style and corporate culture.

Five years later, Garg himself is at the centre of a leadership crisis at the company he founded.

Better said its board had unanimously voted to terminate Garg, with Garg being the only director to oppose the decision. According to the termination notice cited in reports, directors had concerns about his judgment, temperament and credibility. The company also pointed to financial and governance problems during his tenure.

One issue cited by the company was the delay in filing quarterly financial statements. Better has also faced significant financial pressure, with its share price falling sharply from the levels associated with its earlier growth period. The company has reported substantial losses, adding to pressure on its leadership and strategy.

Better’s troubles are a sharp contrast to its position during the pandemic-era housing boom. The digital mortgage lender benefited from strong demand for refinancing and home loans when interest rates were low. At one point, the company was valued at around $7 billion, turning Garg into one of the more prominent figures in the fintech and mortgage technology sector.

The environment changed dramatically as US interest rates rose and mortgage refinancing activity weakened. Better subsequently struggled to maintain the growth levels that had supported its earlier valuation. The company also went public through a merger with a special purpose acquisition company, or SPAC, but its market value later fell substantially.

Garg, however, has rejected the idea that his removal was simply the result of poor business performance. He has accused Lewis, the executive who replaced him, of misleading him about his intentions.

According to reports, Garg said Lewis initially approached him with suggestions on reducing costs and improving profitability. Lewis subsequently joined Better’s board on July 27. Within about a week, the board removed Garg and appointed Lewis as his replacement. Garg has described the sequence of events as a betrayal and said he believed Lewis had gained his confidence before moving against him.

Lewis has previously praised Garg and Better’s strategy publicly, adding another layer to the dispute. Garg is now attempting to rally shareholders and challenge the current board structure.

The former CEO has proposed an extraordinary comeback. He has indicated that he is prepared to return as CEO for an annual salary of just $1 until the company becomes profitable, as part of his effort to regain control.

Garg has also sought changes to Better’s board. His group has been pushing to remove several directors and restore earlier corporate governance arrangements. Recent filings show that entities associated with Garg control about 13.7% of Better’s voting stock, although his campaign has sought support from other shareholders.

Better has pushed back against Garg’s campaign, describing his efforts to regain control as a challenge to the company and disputing his claims about shareholder support. The company has argued that Garg does not have sufficient backing to carry out what it characterises as an attempt to reshape the board.

The boardroom dispute is unfolding against a difficult financial backdrop. Better’s business has been hit by the broader slowdown in mortgage activity, while the company has attempted to reduce costs and improve its operations. The leadership change reflects the pressure facing fintech companies that expanded rapidly during the low-interest-rate period and later struggled as market conditions changed.

Garg’s controversial management history has also remained part of the discussion surrounding Better. The 2021 Zoom layoffs became a defining moment in his public image. The company later acknowledged that negative publicity surrounding workforce reductions and Garg’s leadership style had affected employee morale, management stability and the company’s reputation.

Garg took a temporary break from the company after the 2021 backlash and later returned. At the time, Better’s board said he had reflected on his management style and undergone executive coaching.

The company subsequently went through additional rounds of layoffs as the mortgage market weakened. These workforce reductions added to the perception that Better was struggling to adjust to a tougher business environment.

The latest development has therefore brought Garg’s journey at Better full circle. The founder who once made headlines for announcing mass layoffs over a Zoom call is now fighting a board decision that has removed him from the company he built.

 

Categories
Beyond

Centre to announce banking reform panel soon

The Centre is set to announce a high-powered committee to examine the next phase of banking sector reforms and define how banks can better support India’s ambition of becoming a developed economy by 2047. Finance Minister Nirmala Sitharaman said the panel would be constituted soon, with the ongoing discussions among public sector banks (PSBs) and public financial institutions expected to provide important inputs for its work.

The proposed High-Level Committee on Banking for Viksit Bharat was first announced in the Union Budget 2026-27. The government had said the committee would undertake a comprehensive review of the financial sector and suggest measures to align it with India’s next phase of growth, while keeping financial stability, inclusion and consumer protection in focus.

Sitharaman made the latest announcement while addressing the PSB Confluence 2026 in New Delhi on August 17. The two-day meeting, organised by the Department of Financial Services under the Ministry of Finance, brought together senior executives of public sector banks, public financial institutions, government officials and industry experts to discuss the changing requirements of the banking and financial system.

The timing of the proposed banking reforms is significant. Indian banks have emerged from a prolonged period of balance-sheet stress with much healthier asset quality. Public sector banks reported an aggregate net profit of ₹1.98 lakh crore in financial year 2025-26, their highest ever, while their gross non-performing asset ratio fell to 1.93% and net NPA ratio declined to 0.39% as of March 31, 2026. Their total business also rose to ₹283.3 lakh crore, while gross advances increased 15.7% year-on-year to ₹127 lakh crore.

Sitharaman said the historically low level of non-performing assets (NPAs) has put the banking industry in a stronger position to undertake the next phase of reforms. The focus is therefore shifting from repairing bank balance sheets to preparing lenders for the financing needs of a larger and more complex economy.

The PSB Confluence is expected to play an important role in that transition. The first day of the meeting focused on four areas: deposit mobilisation, banking for youth, supporting the investment cycle and opportunities arising from global capability centres, or GCCs. The discussions were aimed at identifying practical measures that can be implemented across public sector banks and financial institutions.

Deposit mobilisation has emerged as an important concern as banks seek to support faster credit growth while maintaining adequate funding. The discussions examined ways to deepen customer engagement and strengthen the deposit base. For banks, attracting stable deposits remains critical because sustained lending growth requires a dependable source of funds.

The government also wants the banking system to respond better to the financial needs of younger Indians. Sitharaman pointed out that people aged between 15 and 29 account for 29% of India’s population. The confluence therefore examined ways to make banking products and services more relevant to young customers, including areas such as education finance, entrepreneurship and career opportunities.

Participants also explored the possibility of using Mera Yuva Bharat (MY Bharat) to strengthen the connection between young people and the formal financial system. The platform has more than 26 million registered users and could provide banks with a wider avenue to reach potential customers and improve financial awareness among youth.

Another major area under discussion was the investment cycle. Banks and financial institutions will have to play a larger role in financing infrastructure, businesses and new investment opportunities as economic activity expands. The confluence looked at strengthening institutional capabilities and developing financing solutions that can respond to changing investment requirements.

The growing global capability centre (GCC) ecosystem was another focus. With multinational companies expanding their technology, research and service operations in India, public sector banks and financial institutions are being encouraged to identify new opportunities emerging from this sector.

The second day of the confluence is focused on agriculture and horticulture value-chain infrastructure, priority sector lending and rethinking the credit card business. The government expects the discussions across all seven themes to result in actionable strategies and innovative solutions that can eventually feed into the work of the proposed banking reforms committee.

The government is also looking for more direct participation from banking leaders in shaping the reform agenda. Sitharaman has urged bankers to put forward concrete recommendations rather than broad suggestions, with the objective of ensuring that the eventual reforms are practical and capable of being implemented.

For public sector banks, the proposed panel comes at a relatively stronger point in their financial performance. Years of efforts to improve governance, recover stressed assets, strengthen capital positions and tighten credit discipline have improved their resilience. The challenge now is to ensure that renewed lending growth does not recreate the asset-quality problems seen during earlier credit cycles.

The proposed committee is therefore likely to look beyond immediate banking issues and examine the broader role of financial institutions in India’s long-term economic transformation. Its recommendations could influence how banks approach credit, deposits, financial inclusion, technology, risk management and emerging sectors.

With less than two decades left until 2047, the government sees the banking system as a key pillar of the Viksit Bharat agenda. The immediate priority is to convert the improved health of Indian banks into a stronger foundation for sustainable credit growth, wider financial inclusion and greater economic opportunity.

The announcement signals that the next phase of banking reform will not simply be about fixing weaknesses. It will be about building lenders capable of supporting a much larger economy while maintaining stability, consumer confidence and responsible lending standards.

Categories
Corporate

Sensex falls over 350 points, Nifty tests 24,200

Indian benchmark indices extended their decline on Tuesday, with the Sensex falling more than 350 points and the Nifty 50 testing the crucial 24,200 level as rising crude oil prices and renewed geopolitical tensions in West Asia weighed on investor sentiment. The sell-off came as hopes of a fresh US-Iran agreement faded, pushing Brent crude above $91 a barrel.

The decline marked another weak session for the Indian stock market, with the Sensex heading for its third consecutive session of losses and the Nifty extending its losing run to six sessions. Investors remained cautious as higher oil prices threatened to increase inflationary pressure and widen India’s import bill.

Among major stocks, Titan Company, Tata Consumer Products, Bajaj Finance and Shriram Finance were among the stronger performers, helping limit the broader decline. Defensive sectors such as pharmaceuticals and selected consumer stocks also attracted buying interest.

On the other side, State Bank of India, Eternal, ITC and Dr Reddy’s Laboratories were among the prominent laggards in early trade. IT stocks were particularly weak, with the Nifty IT index falling around 1.4 per cent, making it the worst-performing major sectoral index. Colgate-Palmolive also declined nearly 3 per cent after brokerages raised concerns over margins following an analyst meeting.

The sectoral picture was mixed rather than uniformly negative. Auto, pharma, healthcare, consumer durables, oil and gas, mid-cap and chemical stocks showed pockets of strength, while banking, IT, realty, FMCG, financial services and metal stocks came under selling pressure.

The immediate trigger for the market weakness was the sharp rise in crude oil prices. Brent crude was trading around $91.46 a barrel, up 0.63 per cent, after Iran indicated a potentially more aggressive military posture and US President Donald Trump ruled out an extension of the temporary ceasefire arrangement.

The development has raised concerns about possible disruptions to global energy supplies. For India, which imports most of its crude oil requirement, sustained high oil prices can have a significant impact on the economy and financial markets.

Higher crude prices increase the cost of imports and can put pressure on the rupee. They can also raise transportation and production costs for companies, potentially affecting profit margins. If elevated oil prices persist, they could make the inflation outlook more challenging and limit the room for monetary easing.

The rupee opened weaker at ₹95.68 against the US dollar, compared with Monday’s close of ₹95.61. Persistent dollar demand and expensive crude contributed to the currency’s weakness. A weaker rupee can further increase the domestic cost of imported oil, adding to the concerns facing investors.

Foreign institutional investor selling has also emerged as a concern for Dalal Street. FIIs sold equities worth ₹2,535.10 crore on Monday, their highest selling in three weeks. Continued foreign outflows can put additional pressure on large-cap stocks and keep the broader market volatile.

At the same time, the US 10-year Treasury yield climbed to 4.73 per cent. Higher US bond yields can make American fixed-income assets more attractive to global investors and reduce the relative appeal of emerging markets such as India.

The domestic market was also tracking a cautious global environment. Asian markets were mixed to lower, while US equities ended Monday’s session in negative territory. Wall Street futures were also pointing towards a weaker opening.

The Nasdaq Composite fell 0.6 per cent on Monday, adding to concerns around technology stocks. The weakness was reflected in India, where the Nifty IT index led sectoral losses.

Technology companies with significant exposure to the US market remain sensitive to global growth expectations, currency movements and changes in US financial conditions. The combination of geopolitical uncertainty and elevated bond yields has therefore created additional pressure on IT stocks.

Apart from the broader market decline, several stocks remained in focus because of company-specific developments. Paytm saw a large block transaction, with 1.92 crore shares, representing around 3 per cent of its equity, changing hands at ₹1,535 per share. The transaction was valued at nearly ₹2,950 crore.

Groww also witnessed significant block activity, with about 1.2 per cent of its equity changing hands in two block deals. Investors were closely watching the stock for further movement following the transactions.

Bharti Airtel, Paytm, SpiceJet, ONGC and ZEE were among other stocks in focus because of company-specific developments. Indo-MIM, meanwhile, bucked the broader market trend and jumped around 10 per cent after reporting a 32 per cent rise in June-quarter profit. Highway Infrastructure also gained after securing an ₹80.17-crore contract from the National Highways Authority of India.

The immediate direction of the market will depend heavily on crude oil prices, developments in the Middle East, foreign fund flows and global bond yields. With the earnings season largely behind investors, global developments are playing a bigger role in determining market sentiment.